JOHANNESBURG – The economy has contracted for the first time in the third quarter of the year – after showing some green shoots in previous quarters.
Statistics South Africa (Stats SA) says economic activity shrunk by 0.2% in the three months through September.
On the production side of the economy – five out of 10 industries were weaker.
Stats SA released its quarterly gross domestic product (GDP) figures on Tuesday.
It said agriculture showed a substantial drop in output – leading to the losses seen in the third quarter GDP reading.
This was mainly due to decreased economic activities reported for field crops, animal products and horticulture products.
Drier weather conditions and higher input costs are still expected to hurt production – possibly driving food prices back up at a later stage.
Stats SA Bokang Vumbukani-Lepolesa says manufacturing and construction are also among industries that dragged the economy down.
“The manufacturing industry decreased by 1,3% in the third quarter, contributing -0,1 of a percentage point. The food, beverages and tobacco division made the largest contribution to the decrease in the third quarter. The construction industry decreased by 2,8% in the third quarter, contributing -0,1 of a percentage point.”
The latest contraction in the economy follows an expansion of a revised 0.5% in quarter two.
This comes as Africa’s most industrialised economy buckles under the pressure of under-performing energy and logistics sectors.